U.S. Crude Oil


U.S. Crude Oil: In this weeks iTrade Weekly report I said: "The daily and H1 trend is down, but H4 remains up at close of trade this week. But H4 looks set to trigger a sell signal, and when it does, all three time frames will be confluent and pointing downwards."

The H4 chart did, indeed, trigger a sell signal during the trading week, and I moved on this early. Price is currently nearing support, and may bounce around a little this week, but a break below support could see oil prices fall to around $57.00 a barrel.

Well, that was Friday. Today is Monday, and a one hour Exit Alert is forming.

The daily and 4 hour trend remains firmly down, but the 1 hour is close to switching sides from down, to up. Price came close to support at 61.638, got scared and ran away, but it is just a "bump" on the 4 hour chart. The downtrend remains established for the moment, and current supply-demand fundamentals support further price softening. OPEC is increasing supply by 400,000 bbl per day, with the goal of reaching previous production cut output within a few months. And just when the Covid economic recovery was gathering moment, hello Delta variant!

It is hard to believe that just a week or so ago, I was extremely bullish on oil. Today I am bearish.

Crude oil stock levels are replenishing, and oil keeps flowing, but demand tappers off. Too much oil supply.


Oil is trending UP now.. It's seen without any indicators. But there is a problem.. Technical analisys says us:
"Follow the trend" and we must buy, and also it says "sell at the Highs, buy at the bottoms" - and we should sell..

So, what to do, bro? :cool: